Chinese Smartphone Giant Xiaomi Enters Electric Vehicle Market, Targets Tesla, Porsche With SU7

Chinese tech giant Xiaomi Corp. (OTC:XIACF) unveiled its first electric vehicle, the SU7. The company plans to compete against industry frontrunners Tesla Inc. (NASDAQ:TSLA) and Porsche AG (OTC:POAHF) over the next two decades.

What Happened: The SU7, also known as Speed Ultra, was launched on Thursday, as reported by Bloomberg. The batteries powering this vehicle are developed by Chinese firms Contemporary Amperex Technology Co. Ltd. and BYD Co. (OTC:BYDDF) (OTC:BYDDY).

CEO and co-founder Lei Jun views this foray into electric vehicles as a $10 billion opportunity to shake up the transport industry. The SU7 will vie for a place in a market already saturated with multiple models from various brands.

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With the SU7, Xiaomi aims to create a vehicle that can compete with Tesla’s Model S in technology and Porsche's Taycan Turbo in performance. While the pricing details of the SU7 are yet to be revealed, it is anticipated to be significantly cheaper than its competitors.

Why It Matters: Despite the evolving regulations and increasing competition in China, Xiaomi has collaborated with state-owned Beijing Automotive Group Co. to produce the EVs. The company is also in the process of obtaining a sales license for the SU7 in China. The SU7 is slated to be available for purchase next year.

Earlier this month, CEO Lei Jun expressed lofty ambitions for the company’s debut vehicle. According to a recent interview, Jun stated, “I came into car building with an aim to win,” highlighting the company’s significant investment in research and development for the EV, exceeding industry standards by a substantial margin.

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Image Credits – Xiaomi